In a market where ever bigger seems to be better, one TV manufacturer is actually reducing the size of its screens. LG Electronics is sighting market forces in its decision to start producing a smaller version of its plasma screen offerings.

The market it is trying to improve customer numbers in is China with the main driver being the Beijing Olympics being held next year. For the Chinese, the larger 40″+ screens are not the growth area; many prefer the smaller screens. To improve sales, a number of Chinese TV companies will now be getting a 32″ version of LG's plasma panels.

Plasma screens have traditionally only been sold in larger formats due to the manufacturing costs involved and competition from cheaper LCD screens. LG has not specified a price for its new 32″ plasma, but the company has said it will be lower than LCD screens of the same size.

MATTHEW'S OPINION
I'm surprised that LG is making a smaller plasma screen rather than pushing its 32″ LCD screens as an alternative to plasma displays. It is likely that the Chinese prefer plasma displays to LCD and LG is desperate to get a foothold on the pre-Olympics market. Still, it must be making a loss on the screens or at best minimal profits.

It seems the consumer prefers the 23″-40″ screen size at the moment regardless of which market you look at. This is what keeps the plasma displays in the 50″+ size category profitable, but more competition is coming from LCDs. Their size continues to grow along with falling costs and improved screens. Unless the cost of manufacturing plasma screens can fall, I doubt it will survive, especially with other screen technologies starting to make headway.

Expect some very good HD TV deals in the run up to the Olympics next year. It should be discounts galore to get you to part with your cash in 2008.

Does China really have anything worth(12:42am EST Wed May 23 2007)watching on TV? Since a gang of brutal Commies runs China, all forms of media are censored and not likely to offer real value. Chinese would be far better off spending money on a good radio capable of receiving the BBC – sure would beat their government’s pack of lies. – by Dean2